Terms and policies
Policies for L/C payment
When the payment with letter of credit (L/C),
The buyer must accept the conditions which list at below absolutely
If the buyer cannot accept one or more of below conditions,payment with L/C will not accept.
a. Total contract amount sould be more than or equal to USD400000.
b. 30% of total amount prepaid by telegraphic transfer(T.T).
balance(70%) paid with letter of credit at sight (L/C), and its must be Irrevocable letter of credit.
Whenever, D/P,D/A not acceptable.
c. Price term must base CNF/CIF/C&F only.
Dlivery by sea only.
d. The issuing bank or confirming bank must be one of the below bank:
Hong Kong and Shang Hai Banking Corporation
National City Bank of New York
Bank of China
Industrial and Commercial Bank of China
National Commercial Bank of Saudi Arabia
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Related Reading
> What is L/C (letter of credit)
> Uniform Customs and Practice for Documentary Credits (UCP 500)
> Uniform Customs and Practice for Documentary Credits (UCP 600)
> Incoterms 2000
> Incoterms 2010
> United Nations Convention on Contracts for the International Sale of Goods (1980)
> Exemplar of application for irrevocable documentary credit
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